Sales: According to the Wiregrass Multiple Listing Service, the Wiregrass area residential sales totaled 57 units during February, which is 16.3 percent above the number recorded during the same period last year. February sales were 27 percent higher than the 2014 low of 45 units for Wiregrass. Year-to-date home sales are right in line with the same period last year at 104 units. Two more resources to review: Quarterly Report and Annual Report.
For all of the Wiregrass area housing data, click here.
Forecast: February sales were nine units or 13.6 percent below our monthly forecast. ACRE’s year-to-date sales forecast through February projected 123 closed transactions while the actual sales were 104 units, a dip of 15.4 percent for the month.
Supply: Wiregrass area housing inventory totaled 772 units, a decrease of 19 percent from February 2015. Inventory was down 2.3 percent from the prior month. This direction contrasts with historical data that indicates February inventory on average (2011-15) increases from the month of January by 1.5 percent. The inventory-to-sales ratio during February of 13.5 months of housing supply is down 30 percent from the same period last year. Restated, at the February sales pace, it would take 13.5 months to absorb the current inventory for sale. The market equilibrium (balance between supply and demand) is considered to be approximately 6 months during the month of February so this indicates the continued presence of a buyer’s market.
Demand: February residential sales were 21 percent above the prior month. This direction is consistent with seasonal and local historical data that indicates the February sales on average (2011-15) increase from the month of January by 15 percent. The average Days on Market (DOM) until listing sold was 172 days, 12 percent slower than last February 2015 (153 days).
Pricing: The Wiregrass Area median sales price in February was $95,500, a decrease of 4 percent from February 2015 ($114,900) but 4 percent rise above the previous month. This direction is consistent with historical seasonal data (2011-15) that reflects the February median sales price on average increases from the month of January by 19.6 percent. It should be noted that the differing sample size (# of residential sales of the comparative months) can contribute to statistical volatility including pricing. We highly recommend consulting with a local real estate professional to discuss prices as it can and will vary from neighborhood to neighborhood.
Industry Perspective: “Our February results show the most modest consumer home price expectations since late 2012,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “For consumers who think it’s a bad time to buy a home, whose share has trended up from its recent low last November, high home prices have been an increasingly contributing factor. A slower pace of home price appreciation may provide some relief for potential homebuyers, especially first-time buyers who couldn’t reap the benefits of selling a home at high prices to buy another one.” For the full story, click here.